In a year when everything feels in motion, from jobs to markets, finding a dividend stock that offers stability and income can be surprisingly tough. A new CVwizard study shows that 66% of Gen Z and 65% of Millennials plan to change jobs in 2025, mostly for higher salaries, better security, and career growth. That same craving for stability and long-term value applies to investing. If you’re looking for income that lasts, even in a market that’s shifting under your feet, Magna International (TSX:MG) deserves a closer look. It’s down 14% from 52-week highs. But that drop may be the opening long-term investors have been waiting for.
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About Magna
Magna isn’t a new player. It’s one of the largest automotive suppliers in the world, headquartered in Ontario. It builds everything from powertrains to seats to electric vehicle (EV) systems, with operations in 27 countries. The dividend stock is down sharply this year, mainly due to production slowdowns, rising costs, and margin compression. But while the market has punished it, the underlying business is far from broken.
The dividend stock’s first-quarter 2025 earnings tell a mixed story. Total sales came in at US$10.1 billion, a decrease from US$11 billion in the same quarter last year. Net income attributable to Magna was US$146 million, a major increase from US$9 million a year earlier, while diluted earnings per share (EPS) were US$0.52, a substantial increase from US$0.03 as well. Adjusted earnings before interest and taxes (EBIT) dropped to US$354 million from US$469 million, and the adjusted EBIT margin fell from 4.3% to 3.5%.
That’s the part the market reacted to. Profitability is tight. But Magna is navigating through a challenging phase in the auto industry, with EV adoption slowing, input costs staying high, and some major partners adjusting production schedules. The good news is that Magna has long-term contracts in place and a strong backlog of programs that continue to grow, especially in EV platforms and advanced driver-assistance systems.
Considerations
And then there’s the dividend. Despite the earnings compression, Magna continues to pay out a dividend of $2.68 annually. That translates to a yield near 5.1% at today’s depressed stock price. For a global company with a 60-year operating history and a solid balance sheet, that’s a compelling income source. Magna has over US$1 billion in cash on its balance sheet and continues to invest in future technologies while rewarding shareholders.
There’s a psychological side to all this, too. Just as Gen Z workers are now prioritizing job security and long-term alignment over glamour or quick wins, investors are recalibrating what makes a dividend stock worth owning. It’s not just about momentum. It’s about sustainability, proven earnings, and income you can count on. Magna fits into that recalibrated mindset. It’s not perfect right now. But it’s well-positioned to come out stronger.
If EV demand picks up again in 2026 or 2027, Magna’s investments in electrification will pay off. In the meantime, it’s cutting costs, optimizing capacity, and building long-term customer relationships. The stock’s drop means that a lot of the pessimism is already baked in. What’s left is a historically well-run company, now trading at a forward price-to-earnings (P/E) ratio near 9 and offering a solid yield.
Bottom line
It’s not a quick fix. But for someone looking to lock in income for life, Magna has the bones to support that strategy. You won’t get a flashy growth story or overnight returns. But you could get years of dividend income, backed by a global footprint and deep experience in a cyclical but necessary industry.
As younger generations search for jobs that offer both growth and security, long-term investors should look for the same in their portfolios. Magna might not be a popular choice right now, but that’s exactly why it could be the right one. Down 14% but still generating billions in revenue, it offers an opportunity to buy a dependable income stream at a steep discount. For lifelong income, that’s a bet worth considering.
